Finance not approved for unit in Redcliffe

just thought I'd share.... I was pre approved through Adelaide bank for 90% lvr loan up to property value of $250k

Found an older 2 bed unit in Redcliffe for $230k. (Jeffrey st). Valuer went on site and from what I understand gave a positive appraisal. Finance was rejected by Adelaide bank as they say lmi was not approved due to possible flood issues (could be valid) and insufficient comparable sales.

Does that sound "normal"? Rpdata shows recent sales validating my offer and I know for a fact another unit around the corner almost identical sold for more ( I was an active bidder at The auction).

Hmm strange one - the insurer can definitely decide to reject on the basis of valuer concerns. You should try and get your hands on a copy of the valuation and see exactly what the issue is.

Insufficient comparables can't be the reason - not in Redcliffe. They'd just widen the window of comparable sales and the area's hardly remote.

If the lenders willing to fund it but the insurers not, than you may have better luck with a lender that'll agree to the deal without needing the insurers approval - as Jess as alluded to.

I had a recent deal where the insurer (not the lender) was worried about build and pest - which was quite unusual and indicated a greater risk tolerance. After some notes and back and forth with the valuer, it was all cleared up and went through fine.

Other potential strategies - may be able to get a COS of valuation at an 80% lend from either ANZ or CBA if their live options for you.

I had one of my places re valued by a new bank to try and do an equity realease bank came back saying that it was in a flood zone (whole of newcastle is flood zone) and they would only go to 80% lend. Approached the next bank finance was approved straight away

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